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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Fidelity Japan Trust Plc | FJV | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
|
|---|---|---|---|---|
| 1.50 | 0.87% | 174.00 | 15:14:44 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 174.50 | 173.50 | 174.50 | 172.50 |
| Industry Sector |
|---|
| EQUITY INVESTMENT INSTRUMENTS |
| Top Posts |
|---|
Posted at 16/7/2023 08:05 by jonwig Kepler -Warren Buffett’s decision to invest heavily in several Japanese companies over the past 12 months has brought up the usual annoying headlines about how great he is, as well as some discussion as to whether stocks listed in the world’s third-largest economy are worth reevaluating. Is that actually happening? A recent analysis by Copley Fund Research provides some answers by looking at the weightings to Japan in a set of Global Equity Funds. The first thing to note is that the average fund has been underweight to Japan, compared to the MSCI ACWI, for the entirety of the past decade. However, the spread between the average fund weighting and the index weighting has been tightening over the past five years and is now at close to its tightest level since 2014. Another point that stands out in the report is the proportion of funds that have exposure to Japan. Looking at the past decade again, the proportion of global equity funds investing in Japan hit its lowest level approximately 12 months ago. Since then it has bounced back sharply, from a low of 84.9% to 87.1%. However, exposure to Japan is markedly different depending on style. Value funds have an average overweight position. In contrast, income funds and growth investors are both underweight on average. Top down analyses like this can mean you end up capturing data that isn’t entirely accurate, mainly because classifying funds can be an exercise in trying to square a circle. For example, the British & American Investment Trust (BAF), as readers can likely infer, invests in US and UK companies and is benchmarked against the FTSE All-Share. However, it is part of the AIC’s Global Equity Income Sector. Nonetheless, Copley’s research, which looks at funds globally, does seem to fit broadly with trends we see in the UK’s investment trust sector. For instance, every trust in the AIC’s Global Equity Income sector is currently underweight Japan, reflecting the relatively low dividend payouts Japanese companies offer. In contrast, several trusts in the AIC’s Global sector are overweight to Japan. For instance, Bankers (BNKR) upped its weighting from 7.4% at the end of October last year, to 13.4% at the end of May. That coincides with a period where the managers have tilted the portfolio more towards value, after a decade-long period focused on growth. AVI Global (AGT) is probably the most notable trust in the sector when it comes to Japan, with the trust having a 19% weighting to the country. However, the trust managers are Japan specialists and take a differentiated, value-driven approach to markets. For example, a key part of the strategy is to invest in what the managers believe are undervalued investment trusts trading at a discount, and to capture the enhanced returns that a tightening of the discount produces. In some ways, the tilt towards Japan in value funds also mirrors some of the success we’ve seen in country specialist trusts. For instance, AVI Japan Opportunity (AJOT), which is managed by the same company as AGT, also takes a value-driven approach to Japanese Smaller Companies and has enjoyed a strong 12 months compared to its benchmark. Similarly, CC Japan Income & Growth (CCJI) has had a very strong 12 months. The trust managers look to invest in companies that can pay increasing, sustainable dividends, and have been able to benefit from some of the corporate reforms we’ve seen in Japan over the past decade. For investors considering Japan, CCJI arguably offers a more attractive approach today. As we noted earlier this year, valuations in Japan do look attractive and corporate reforms, as well as modest inflation levels, continue to act as a tailwind for investors. However, stylistic calls remain hard to make and the balance that CCJI offers – valuation-conscious but not pure value plays – may be the better choice to make today. |
Posted at 09/5/2023 18:05 by jonwig Citywire -Another overlooked market we have invested in recently is Japan, where a surge in shareholder activism is reinvigorating the region’s dated corporate culture. In particular, the country’s cash-rich but low-yielding businesses are proving fertile ground for change. Since 2019, there has been a steady increase in activist events, share buybacks and takeovers in an effort to improve profits for investors. Despite the resultant increase in shareholder returns across the board, Japanese companies – particularly at the smaller end of the spectrum – continue to trade on much lower multiples than international peers |
Posted at 20/4/2023 07:03 by jonwig FT:Japan’s stock market could be set for the best returns in a generation, say analysts bullish about the prospect of an end to decades of deflation and growing levels of shareholder activism — but their optimism has yet to persuade many overseas investors to part with their cash. |
Posted at 16/2/2023 11:59 by jonwig "... we think Japan could do well, and given how poor sentiment has been towards the country, this could be a powerful driver behind relative returns." |
Posted at 04/2/2023 09:35 by jonwig Why it’s finally time to take a look at JapanBy Simon Edelsten (a Japan fund manager) Good companies and a rising yen should tempt investors |
Posted at 12/1/2023 18:42 by jonwig From an FT newsletter ("Unhedged") this morning:Pelham Smithers of Pelham Smithers Associates, our go-to Japan watcher, thinks this is all heralding a grand shift in inflation psychology. As he pointed out to us yesterday, the headline inflation rate probably understates how profoundly wage-price dynamics are changing: Two things have happened over the last year. The first is that inflation in Japan has been quite a big media story. It would be very difficult to watch the day-to-day news without getting caught up in the inflation story. The second thing is that high-street [retail] inflation has been essentially running at double the national rate. [In contrast to, for example, rent inflation near zero] if you’re someone shopping on the high street, you’ve seen something around 6 to 7 per cent inflation. So you’ve been feeling like prices have been rising . Because major parts of Japanese household spending haven’t gone up, the headline rate isn’t as high. But the psychology the Japanese have had about inflation is probably worse than the peak in the US or the UK, because they haven’t experienced it for 30 or 40 years. An inflation regime change would likely remake the country’s sluggish stock market: nominal profits, at long last, could expand. That would make the appeal of investing in Japan much clearer for global investors. |
Posted at 29/8/2014 17:02 by snowydays The bonus issue is only for subscription shares. They are a bit like warrants or options.They give you the right to buy ordinary shares at 86p until April 2016. Since this is above the current price there is no dilution and the subscription shares have little value. Small investors might even find that selling their bonus shares will not cover dealing costs. |
Posted at 04/1/2010 11:33 by cyborg27 Nice to see some interest again. I think everyone else has given up. I read an article about investors finally 'capitulating' regarding Japanese Smaller companies, which would be a good contrarian buy signal - it's got to change sometime! I think the new government has better ideas which will help. |
Posted at 13/7/2007 08:41 by tonyr GB904150, Atlantis Japan Growth (AJG) is worth consideration - a highly regarded manager, but consequently it rarely sells at much of a discount.Trustnet:- Prelims last week:- "The year to April 2007 saw lacklustre performance from the Japanese stock market, despite a relatively good economy and solid growth in corporate earnings. This was especially true in the case of smaller stocks and stocks outside of favoured areas such as manufacturing, commodities and export-related businesses. Nevertheless, at this time we remain encouraged by continued growth in the economy and corporate earnings, and by the benign trends on the consumer price front that have allowed Japan's central bank to limit interest rate hikes. We also remain confident that consumer spending will pick up momentum going forward, and will strongly underpin continued growth in the economy in the months and years ahead. As long-time investors in Japan well know, consumer spending has been under pressure since the early 1990s as a result of a prolonged period of deflation. The extended drop in asset prices not only reduced the store of wealth of households, through pulling down real estate and stock market prices, it also led to heightened anxiety on the income front, as corporations were forced to restructure, putting more into unemployment and capping income gains for those remaining in work. Only recently have we started to see the light at the end of the tunnel for the Japanese consumer. The prolonged downtrend in asset prices finally appears to be coming to an end, with property prices in major cities now stabilising or moving higher, and stock market prices well above their lows recorded in 2003. Households are also starting to see improvements on the income side, as consecutive years of earnings growth has put corporations in a position to increase the hiring of full-time employees and increase wages, overtime hours and bonuses for existing employees. To be sure, these favourable turns have not yet been enough to bring about a full-fledged recovery in consumer spending. However, we believe these supportive trends will lead to higher consumer spending going forward, which will in turn bolster overall growth and confidence in the economy. In the stock market, we note that local retail investors currently account for about 40-50% of daily trading volume. On balance, Japanese retail investors were net sellers again during the past year, as they have been for many years. Even so, we are finding signs of a growing interest in equity investments, a reflection of a slow, but steady recovery in investor confidence following recent years of sustained growth in corporate earnings and ongoing increases in stock dividend payouts. In addition to net buying by local investment trusts, which represent buying by retail investors, we also find domestic institutional investors such as pension funds showing a greater inclination towards increased exposure to domestic equities, including smaller stocks. The Company remains heavily weighted in small and medium-sized stocks, reflecting our adviser Ed Merner's view that most of the best investment opportunities are still found in this area of the market. These smaller companies, some of which are listed on the newer markets or regional stock exchanges, are seen as offering good value for long-term investors. In many cases, the holdings in which the Company has invested are insulated from swings in the overall economy because they operate in fast growing niche businesses such as generic drugs, temporary worker dispatch services, internet advertising, software and IT services. Regardless of trends in individual company fundamentals, however, there are times when small cap stocks will move sideways or down even as large cap issues continue to rise, and this is precisely what has happened during the past year. This short-term setback notwithstanding, we remain confident that most of the companies in which the Company has invested will continue to grow as expected and, thus, will turn out to reward long-term investors. During the past year, while many major world stock markets moved to new highs, the Japanese market was left behind. With Japanese corporate earnings continuing to rise during this timeframe, share price valuations in Japan have thus remained at their lowest levels since the mid- to early-1980s. Based on prospects for continued growth in the domestic economy and corporate earnings coupled with near-zero inflation, we believe the stage is set for the Japanese stock market to begin moving higher once again and, in particular, think the Company is well positioned to benefit from the recovery." - there's obviously a good possibility that Japan remains a lagard and money tied up in any of these Japanese focused funds continues to languish. But, after the falling/sideways movement since the start of 2006 on the Topix 2nd section, a positive change in sentiment could quickly see some sizeable gains: just a return to the end of 2005 levels, never mind a catch-up with emerging Asian markets, would deliver considerable upside from here, especially if combined with reduction in discounts to NAV (or back to a significant premium in the case of AJG). The sensible thing to do would probably be to wait for some indication that this change in sentiment was underway: less upside, but also reducing the chance of money tied up languishing. |
Posted at 01/7/2007 22:49 by knowing Tokyo shares seen retesting 7-year high as first-half gains may extendTOKYO (Thomson Financial) - The Tokyo stock market is expected to extend its first-half gains into the second half, propelling the benchmark Nikkei 225 index toward 20,000, its highest level in seven years and more than 10 percent above the close on Friday. In a continuation of trends seen in the first half, the industrialization of the so-called BRIC countries -- Brazil, Russia, India and China -- and a firm economic outlook in other parts of the world are expected to encourage investors to buy shares of exporters, while concerns about the strength of domestic demand remain, analysts said. In the first half, Hitachi Zosen, Japan Steel Works and Sumitomo Metal Mining enjoyed the biggest percentage gains among Nikkei components as investors eyed growing demand in the BRIC countries and greater Asia for industrial materials and cargo transportation. Those gains helped power the blue-chip market gauge to a 5.3 pct gain to 18,138.36 on Friday from 17,225.83 on December 29, its last trading day in 2006. Not all stocks took part in the rally. Shinsei Bank, Casio Computer and Sky Perfect JSAT suffered the steepest percentage declines, hit by earnings worries. The Nikkei touched a seven-year closing high of 18,240.30 on June 21, after overcoming the global stock market turmoil triggered by a sharp sell-off in the Chinese market in late February. The steep decline on the Shanghai stock exchange caused the Nikkei to shed its year-to-date gains and sent it to a March 5 closing low of 16,642.25, a full 8.6 pct below the February 26 close of 18,215.35. For the rest of the year, the Nikkei is likely to advance further into territory not seen since mid-2000, as the benefits of a weaker yen are felt, boosting investor confidence in the export-oriented Japanese economy, analysts said. "The market will probably trend higher to a little above or below 20,000 on the Nikkei by the year-end. This is based strictly on the condition that the yen stays near current levels and thereby leads to the upgrading of earnings projections by major exporters," said Hiroyuki Fukunaga, strategist at Rakuten Securities. The dollar has climbed to just below 124 yen in recent sessions, up almost eight yen from its March level with half of the four-month gain coming after Japanese companies had hammered out earnings projections that were based on an outlook for a firmer yen. By sector, producers of steel and other industrial materials, as well as shipping companies and shipbuilders, are expected to remain investor favorites in light of strong demand from BRIC countries and broader Asia. "Steel makers and marine transporters are best placed to benefit from surging demand in such emerging countries as China. Nippon Steel and Mitsui OSK Lines, the leaders of these sectors, are a must to have in portfolios," said one trader at a European asset management firm. Nippon Steel has forecast that its revenues would expand 11 pct to 4.76 trln yen in the current fiscal year. Mitsui OSK has forecast an 8 pct rise in revenues to 1.70 trln yen in the year to March 2008. Shares of carmakers, such as Toyota Motor, may also gain in popularity as the yen weakens, raising hopes that these companies that are heavily dependent on offshore demand may beat the earnings projections made in April and May, analysts said. A weak yen buoys the yen-converted value of earnings received in foreign currencies. Shares of high tech companies, on the other hand, may not enjoy as much investor interest despite their deep ties to demand abroad, as they are faced with stiffer competition from players in not only the US and Europe but also Asia, analysts said. Bridgestone, the world's largest tire maker, on Wednesday lifted its earnings guidance for the year to December, attributing its improved outlook to the weaker-than-expected yen so far this year, as well as surprisingly firm sales in the US. Analysts said Bridgestone's announcement is the first sign of the impact the weak yen is having and bodes well for all the carmakers, the major constituents of the Nikkei index. "There is a possibility that the yen's recent weakness may lift earnings sharply" at carmakers, while their business fundamentals have also improved, thanks partly to the increasing weight of China and other emerging markets, said Shinya Naruse, a car-sector analyst at Nomura Securities. Rising gasoline prices have made fuel-efficient cars popular, and this should also help Japanese carmakers escape much of the impact of softer demand in the US where top Japanese carmakers generate roughly 60 pct of their operating profits, he said. The Nomura analyst on Wednesday lifted his investment recommendation on the auto sector to bullish from neutral, and said car shares are broadly undervalued at current levels. But although most analysts are bullish on the stock market, they caution that political uncertainty may pressure the Nikkei towards 17,500 or slightly lower before the upper house election on July 29. "The election, along with a probable rate hike by the Bank of Japan, is the most significant event when looking at the market's prospects through the year-end," said the trader at the European asset manager. Investors are wary that the vote may sap Prime Minister Shinzo Abe's ruling Liberal Democratic Party and drag on the government's efforts to reform the Japanese economy. Reforms have been a key market driver in recent years. The Nikkei began its advance in October 2005 when the Parliament passed a bill to privatize the postal services, a plan proposed by Abe's predecessor, the reformist prime minister Junichiro Koizumi. At that time, the Nikkei was trading around 13,000. "If a loss by the LDP in the vote removes foreign investors' hopes in Japan's chances to reform, they may unload the holdings built in positive response to the passing of the postal services reform bill. That would be a major pressure on the market," Rakuten's Fukunaga said. The lack of a steady recovery in consumer demand may continue to be a source of concerns for investors as it has been for the Bank of Japan which aims to "normalize" its super low interest rates. Even so, investors expect the central bank to raise its overnight call rate target by 25 basis points to 0.75 pct after the election, most likely in August. "Share prices have factored in the possibility of one rate hike this year, while uncertainties remain on chances of a second move," said Tsuyoshi Segawa, strategist at Shinko Securities. Investors will monitor closely the effects of one or two rate hikes on the economy and on the yen, analysts said. The best timing to launch into buying will be around September if a possible August rate hike fails to spark the active unwinding of yen carry trades, which would cause the yen to strengthen again. "An upgrading of earnings projections by carmakers and other exporters in or around September will trigger the buying spree which I expect to send the Nikkei rising towards its highs for the year," Rakuten's Fukunaga said. (1 usd = 123.21 yen) |
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